Wednesday is a pivotal day on North American stock markets and in currency markets, according to Vancouver Bullion and Currency Exchange sales manager Kevin Ma.
Wednesday’s trading will likely make it clear whether Tuesday’s commodity sell-off is the start of continued weakness or simply a blip in what has been a bull market the last four months, he said.
The Canadian dollar lost more than two cents against the U.S. dollar (US$0.964) at one point, yesterday, before recovering to be off $0.017 to close at US$0.9691.
Three things impacted the Canadian dollar:
“It was a commodity market sell-off today,” Ma said.
The TSX fell 0.77%, or 97.46 points, and it was commodities that drove the market down.
“There was profit taking. Everyone was finding an excuse to get out. No one wants to be the last guy jumping off that ship taking profit,” Ma said of the sell-off.